The Role of Financial Education in Shaping Investment Behavior and Business Decision-Making Skills of Management Students

Abstract

The present study aims to investigate the role of Financial Curriculum and Simulation Learning in moderating the Investment Behavior of management students of Pakistan through the process of Decision Competence. The study builds upon the premise from Human Capital Theory, Experiential Learning Theory, and Student Engagement Theory to create a moderated mediation model. Financial Curriculum and Simulation Learning significantly increase Decision Competence and Investment Behavior, where Simulation Learning had the higher effect on Decision Competence.

The three variables, Decision Competence, Investment Behavior, and the educational pathways, are related in a way that Decision Competence is able to predict Investment Behavior, with significant mediation effects in both pathways. Learning Engagement enhances the impact of Financial Curriculum and Simulation Learning on Decision Competence. The model has good explanatory and predictive power, emphasizing the need for practical, engaging financial education to foster informed investment practices and business decision-making.